The Federal Executive Council (FEC) has approved the contract sum of $1.5billion for the rehabilitation of the Warri and Kaduna refineries.
The approval was given on Wednesday at the meeting of the Federal Executive Council presided over by Vice President Yemi Osinbajo.
Minister of State for Petroleum, Timipre Sylva explained that the cabinet approved the sum of $897, 678, 800 for rehabilitation of the Warri Refinery, while $586, 902,256 was approved for the Kaduna Refinery.
He said the contracts were awarded to Saipem SPA and Saipem Contracting Ltd.
Sylva said that the rehabilitation of the two refineries would be in three phases.
“First phase is within 21 months; in 23months, Phase 2 will be completed and in 33 months, the full rehabilitation will be completed,” he stated.
Sylva said that work has already commenced in the rehabilitation of the Port Harcourt Refinery.
“Already the first 15% of the contract sum has been paid to the contractor and contractor has fully mobilized to site.
“We also discussed in council the need to give periodic updates.
“Soon we will be going to inspect the work in the Port Harcourt Refinery.”
20% stake in Dangote Refinery
According to Sylva, the Federal Executive Council also approved the acquisition of 20% minority stakes by the Nigerian National Petroleum Corporation, NNPC in the Dangote Petroleum Refinery in the sum of $2.76billion.